Payroll Services Buying Guide
Things to watch out for
Aside from the disadvantages already mentioned, there are
a number of things you should be aware of as regards payroll
services:
- Make sure they provide a high level of customer service.
In particular,
- Will they provide a single point of contact who is available
to deal with any queries on a day-to-day basis?
- Are they flexible enough to deal with adjustments after
the provision of the initial information?
- Look at the adequacy of security procedures regarding
the data held.
- Evaluate their ability to create a smooth handover from
your present payroll procedures.
- If the service provider's business is primarily payroll,
they need to have a substantial client base to ensure stability.
An ideal provider should support several hundred clients.
- Since every industry has different processing requirements,
make sure the provider has experience with companies similar
to yours. Check out references if necessary.
Other buying suggestions:
- Negotiate the contract well. There are so many outsourcing
companies now that deals seem easy to make. However, when
writing the contract, think about:
- How will adjustments to the payroll be accommodated?
- Will these changes be included in the price, or be billed
on an individual basis?
- If your company is taken to court on some payroll issue,
who is liable?
- What is the frequency and type of reports that will be
available?
- What is the charge for additional reports?
- For how long will the contract apply?
- Once the contract is signed, don't assume that everything
will go as planned. Manage the relationship with your provider
by constantly evaluating how satisfied your internal customers
are with the system and providing feedback to the provider.
- As a precaution, carefully review the first paycheques
issued as well as the money paid to cover taxes
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